Debt Settlement Forms

Written by Jill Morrison

Debt settlement forms are available online which can greatly improve the lives of consumers in debt. It is startling to realize how many individuals have a debt load they cannot handle. Credit card debt now averages over $8,500 per household. The typical family pays $1,100 per year in interest charges on credit cards. Even more disturbing, 1.5 million personal bankruptcies were filed in 2001. Consumers who have run into serious debt problems should take advantage of the debt counseling and management services available to them.

Understanding Debt Settlement Forms

Settlement request forms are posted online. Upon completion, consumers will receive a free analysis of their unsecured debt and a recommended course of action. Required information includes name, e-mail address, number of unsecured debts, and total amount of debt. Most sites do not ask for extremely private data over the Web. This information is not necessary to make a preliminary recommendation. There should be no obligation to sign up for a program.

When consumers agree to use a settlement service, enrollment forms must be filled out. These contracts clearly state the terms of the agreement including fees and services provided. At this point, customers will complete forms giving a more detailed picture of their financial situation. Names of creditors, amounts owed, and collection history must be clearly stated.

Form letter samples are available online to help debtors improve their credit and become debt free. Letters to credit bureaus are necessary to request removal of unauthorized inquiries and false information. Letters to collection agencies may ask them to cease and desist contact or to validate a debt. Letters to creditors might offer settlement of a debt for a reduced amount.